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Posts From Schroders

Evaluating the Current Multi-Asset Investment Landscape

Evaluating the Current Multi-Asset Investment Landscape

🕔14:43, 18.Aug 2023

In the "Monthly views – Equities Government bonds Commodities Credit", the state of various primary asset classes is examined. The main theme revolves around the present outlook on equities, government bonds, commodities, and credit. The text suggests a neutral stance

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Learning from Mistakes: A Half-Yearly Reflection on Investment Performance

Learning from Mistakes: A Half-Yearly Reflection on Investment Performance

🕔13:14, 7.Aug 2023

The author reflects on their personal and professional journey so far this year, emphasizing the importance of a learning mindset in both parenting and investing. Using their experiences and errors as stepping stones, they explain the constant need for humility

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Modern Slavery: Confronting and Combating a Global Scourge

Modern Slavery: Confronting and Combating a Global Scourge

🕔14:38, 4.Jul 2023

According to the International Labour Organisation (ILO), modern slavery, including forced labor, child labor, human trafficking, debt bondage, and forced marriage, affects over 49 million people globally. This alarming situation has been exacerbated by the COVID-19 pandemic's disruption of global

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Commodities: The Game-Changer in Strategic Asset Allocation for the New Decade

Commodities: The Game-Changer in Strategic Asset Allocation for the New Decade

🕔13:43, 7.Jun 2023

Schroders, in their report "Commodities: A Structural Allocation for the Next Decade?" explores the heightened relevance of commodities in the changing economic landscape. Noting that commodities emerged as one of the few winners in 2022 amidst widespread asset value declines,

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Navigating the High Tide: Corporate Bonds Amid Rising Interest Rates

Navigating the High Tide: Corporate Bonds Amid Rising Interest Rates

🕔16:53, 5.Jun 2023

The original document titled "Regime shift: How exposed are corporate bond issuers to higher interest rates?" investigates the impact of increased interest rates on corporate bond issuers. Despite the surge in interest rates over the past year, the corporate bond

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Climate Change Conundrum: Navigating Real Estate Investment Adaptation

Climate Change Conundrum: Navigating Real Estate Investment Adaptation

🕔17:05, 1.Jun 2023

Schroders' "Climate change and cities: Adapting real estate investment decisions" advocates for a novel approach in assessing physical climate risk, urging the real estate sector to infuse this aspect into their financial decision-making. The research posits that an innovative blend

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Equity Markets in 2023: Rising Valuations Amidst Earnings Pressure

Equity Markets in 2023: Rising Valuations Amidst Earnings Pressure

🕔10:43, 16.May 2023

2023 is shaping up as a robust year for major developed markets, primarily driven by increasing valuations amidst weak earnings. European equities, in particular, have seen almost a 17% uptick in USD terms by the end of April. However, emerging

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30-Year Return Forecasts: Climate Change Impact and Long-Run Asset Class Performance<

30-Year Return Forecasts: Climate Change Impact and Long-Run Asset Class Performance<

🕔14:58, 1.May 2023

Incorporating Climate Change: 30-Year Forecasts for Asset Class Performance and Returns This paper, titled "Long-run asset class performance: 30-year return forecasts," discusses Schroders Economics Group's annual thirty-year return forecasts for a range of asset classes, incorporating the impact of climate

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Turbulent Market Conditions and the Echoes of History

Turbulent Market Conditions and the Echoes of History

🕔14:31, 28.Apr 2023

In the midst of market turbulence, the banking sector faces challenges reminiscent of the Global Financial Crisis and the dotcom bubble. The author of "CIO lens" by Schroders highlights the importance of learning from past experiences while also considering the

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Climate Change Impacts on Long-Run Asset Performance: A 30-Year Forecast

Climate Change Impacts on Long-Run Asset Performance: A 30-Year Forecast

🕔16:31, 24.Apr 2023

Long-run asset class performance: How climate change will impact asset returns – an update  Incorporating the impact of climate change, Schroders Economics Group presents a 30-year return forecast for cash, bonds, credit, equities, and real estate. This analysis utilizes Oxford

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Equity Lens: Q1 Market Performance and Opportunities Amid Valuation Disparity Presentation

Equity Lens: Q1 Market Performance and Opportunities Amid Valuation Disparity Presentation

🕔10:02, 21.Apr 2023

In Schroders' "Equity Lens," the main theme highlights the strong market performance during the first quarter, led by Europe ex UK with a 12.2% gain in USD terms, despite weak earnings. The text also emphasizes elevated valuation-dispersion among companies and

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Corporate Bond Spreads Rise and Default Rates Increase

Corporate Bond Spreads Rise and Default Rates Increase

🕔08:03, 19.Apr 2023

Main theme: The text discusses the recent rise in corporate bond spreads, higher yields offset by lower risk-free yields, and increased default rates in the high-yield sector, and the risk to corporate margins due to increasing costs. Corporate Bond Spreads

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Central banks will prioritise inflation over growth

Central banks will prioritise inflation over growth

🕔15:05, 23.Mar 2023

Inflationary pressures mean monetary policy must be tighter and more restrictive than it has been in the recent past. Higher for longer interest rates will be an important feature of a new regime in policy and market behaviour. The global

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Multi-asset investing in post-pandemic China: Five Takes

Multi-asset investing in post-pandemic China: Five Takes

🕔13:55, 21.Mar 2023

This report highlights the evolution of Chinese assets and investors’ allocations to the region. Observation 1 shows that investors outside China have low allocations to the country, with variations depending on their location and investment strategy. Chinese equities and bonds

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Ten key themes for 2023 and beyond

Ten key themes for 2023 and beyond

🕔15:45, 20.Mar 2023

March 2023 2022 was certainly a tumultuous time for investors. The year was dominated by the Federal Reserve’s actions to fight inflation, particularly given the widespread perception earlier in the year that it was behind the curve. US Core inflation stood

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Schroders Emerging Markets Lens: Equity

Schroders Emerging Markets Lens: Equity

🕔08:13, 20.Mar 2023

Strategic Research Unit Summary 3 The strong start to 2023 for emerging market (EM) equities faded in February. The China re-opening rally lost steam, and was exacerbated by re-escalation in US-China tensions. Meanwhile, more resilient US macroeconomic data raised the

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Mutual funds are in decline: what comes next?

Mutual funds are in decline: what comes next?

🕔14:56, 1.Mar 2023

For almost a century mutual funds have provided a simple and effective solution for investing: delegation to professionals, diversification through pooling of client assets, and security through a regulated legal structure. But times are changing, and so is the way

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China to the rescue?

China to the rescue?

🕔11:49, 28.Feb 2023

Economic and Strategy Viewpoint Q1 2023 Upgrade to global growth as developed markets hold up and China reopens. After what has felt like a constant period of negative economic shocks and forecast downgrades as the world has lurched from one

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Our multi-asset investment views – February 2023

Our multi-asset investment views – February 2023

🕔21:53, 25.Feb 2023

We maintain our neutral stance on equities as although peaking interest rates take some pressure off valuations, risks remain

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Understanding cybersecurity risks

Understanding cybersecurity risks

🕔16:52, 24.Feb 2023

In focus Cyber risk is one of the most immediate and financially material risks that organizations face today. Those that fail to implement robust management on cybersecurity may be less resilient in the long term. In this paper we undertake

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Regime shift: The return of “fiscal activism”

Regime shift: The return of “fiscal activism”

🕔08:08, 22.Feb 2023

We expect more active fiscal policy to be one aspect of a new regime in policy and market behaviour as governments attempt to alleviate the effects of higher inflation through tax and spend policies. This note explores the challenges and

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Does anywhere look cheap: countries?

Does anywhere look cheap: countries?

🕔10:39, 21.Feb 2023

Valuations continue to favour ex-US markets Summary Markets have rallied hard in early 2023, on relief at China re-opening and on expectations that there will be a softer economic landing than previously feared in the developed world (slide 9) Europe’s

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Emerging Markets Lens

Emerging Markets Lens

🕔16:07, 17.Feb 2023

After the recent rally and downward revisions to 2023 earnings expectations EM equities are no longer cheap on a forward P/E basis. The price-book ratio is close to its historical median. On a dividend yield basis, EM remains cheap versus

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Long-run asset class performance: How climate change will impact asset returns – an update

Long-run asset class performance: How climate change will impact asset returns – an update

🕔15:51, 26.Jan 2023

Schroders Economics Group produces thirty-year return forecasts on an annual basis, which incorporates the impact of climate change. This is Part 1 of our paper where we outline the methodology used to incorporate climate change into our return assumptions. In

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Recession looms for 2023

Recession looms for 2023

🕔08:24, 26.Jan 2023

Economic and Strategy Viewpoint The coming year is expected to be one of recession for the advanced economies with the eurozone now expected to join the US and UK in recording a fall in output for 2023 as a whole.

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30-year return forecasts – Part 2

30-year return forecasts – Part 2

🕔08:09, 24.Jan 2023

In 2020, our assumption started to incorporate the impact of climate change and the energy transition. Each year, we have developed the supporting analysis, and for this year’s update, our central case has moved to the Delayed Transition scenario following

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Brighter days ahead?

Brighter days ahead?

🕔11:23, 23.Jan 2023

It’s a gloomy time of year in more ways than one at the moment. Even the excitement of my recent move to a new house can’t distract from the literal and figurative darkness of January 2023. The war …

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PowerPoint Presentation

PowerPoint Presentation

🕔02:13, 19.Jan 2023

The macroeconomic backdrop, and regime shift, created a challenging environment for EM assets in 2022. Slowing economic growth, accelerating inflation, exacerbated by Russia’s invasion of Ukraine, and tighter global financial conditions were all headwinds. EM local and dollar debt both

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Emerging Markets Lens: Emerging Market Debt

Emerging Markets Lens: Emerging Market Debt

🕔23:08, 18.Jan 2023

The macroeconomic backdrop, and regime shift, created a challenging environment for EM assets in 2022. Slowing economic growth, accelerating inflation, exacerbated by Russia’s invasion of Ukraine, and tighter global financial conditions were all headwinds. EM local and dollar debt both

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10-year return forecasts (2023–32)

10-year return forecasts (2023–32)

🕔14:46, 18.Jan 2023

The Schroders Multi-Asset long-term capital market assumptions are forwardlooking estimates of total returns which are an important component for the team’s strategic asset allocation modelling and portfolio construction. This note presents our latest 10-year capital market returns forecasts in local

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Perspective of GBP investor

Perspective of GBP investor

🕔10:33, 16.Jan 2023

2022 summary: the combination of rising risk-free yields and wider spreads resulted in the worst year in IG credit since at least 1970s. History suggests a better …

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Schroders Equity Lens – January 2023

Schroders Equity Lens – January 2023

🕔16:17, 12.Jan 2023

Last year saw a reversal of many of the past decade’s trends: – the US (-19%) was one of the worst performing markets, the UK was one of the best (+7% in GBP, -5% in USD) (slides 10-11) – growth

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Emerging Markets Lens: Equity

Emerging Markets Lens: Equity

🕔08:29, 5.Jan 2023

Year-to-date, EMEA markets have taken a hit, while several Asian EM, including China, lag the index. Conversely, commodity-producing Latin American and Middle Eastern markets have been the top performers. After the recent rally, and downward revisions to 2023 earnings expectations,

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The case for European senior secured leveraged loans

The case for European senior secured leveraged loans

🕔08:26, 19.Dec 2022

European senior secured leveraged loans are a growing and integral part of the leveraged finance universe. They offer a 10% yield, have positive exposure to rising interest rates (unlike most fixed income), offer credit protections to manage downside risk, and

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Economic and Strategy Viewpoint Q4 2022

Economic and Strategy Viewpoint Q4 2022

🕔15:33, 5.Dec 2022

The coming year is expected to be one of recession for the advanced economies with the eurozone now expected to join the US and UK in recording a fall in output for 2023 as a whole. The emerging markets have

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Harnessing the power of investment to accelerate a nature positive future

Harnessing the power of investment to accelerate a nature positive future

🕔12:22, 23.Nov 2022

The world has woken up to the vital role that nature plays in supporting our economy and society. With more than half of our global GDP dependent on the natural world, 1 we believe that the reality is stark: nature

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Schroders Credit Lens – Perspective of EUR investor

Schroders Credit Lens – Perspective of EUR investor

🕔12:24, 17.Nov 2022

Credit spreads have narrowed again, especially in the US. Valuations remain more compelling in European credit. While US HY index spread has narrowed, lowest-rated CCC bonds are underperforming and dispersion between issuers is rising. Rising risk-free yields and wider spreads

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Re-appraising the case for Latin American equities

Re-appraising the case for Latin American equities

🕔14:21, 14.Nov 2022

Latin America is a region which has long offered promise for investors, but which has seen equity performance disappoint over the last decade. The share of Latin American markets in major equity indices over this period has shrunk, as investor

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We need to talk about yields

We need to talk about yields

🕔12:38, 26.Oct 2022

Schroders CIO Lens: At the beginning of the summer, I asked the question “are we there yet?”, in relation to whether it was time to start thinking about taking on more investment risk. The answer then was no. At that

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Sustainability – Europe Institutional Investor Study 2022

Sustainability – Europe Institutional Investor Study 2022

🕔12:09, 1.Sep 2022

The 2022 Schroders Institutional Investor Study confirms once again how European investors have made sustainability an integral part of their activity, ahead of the global average in the race to net zero, regulatory agenda, and commitment to their role in

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Economic and Strategy Viewpoint Q3 2022

Economic and Strategy Viewpoint Q3 2022

🕔16:00, 24.Aug 2022

This is very new for younger investors. Interest rates are rising at an alarming pace, as central banks admit that inflation is no longer just a series of transient shocks, but there is a risk that it becomes more ingrained.

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Schroders Emerging Markets Lens: Emerging Market Debt

Schroders Emerging Markets Lens: Emerging Market Debt

🕔16:07, 4.Aug 2022

Summary Hard currency emerging market debt (EMD): – Valuations vary: 1. The spreads of investment grade (IG) sovereign and IG corporate indices are close to their historical medians. High yield (HY) corporate index spreads have inched slightly above the historical

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Schroders Equity Lens – Q3 2022

Schroders Equity Lens – Q3 2022

🕔14:19, 19.Jul 2022

Global equities fell in Q2, extending year-to-date declines. The MSCI World Index returned -16.2% in Q2, taking the YTD fall to -20.5%. The market backdrop remained dominated by concerns over higher inflation, rising …

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Schroders CIO Lens

Schroders CIO Lens

🕔07:56, 14.Jul 2022

T o anyone who ever travels with children, the incessant question “are we nearly there yet?” will be a familiar refrain that punctuates any long distance car journey. It’s certainly a favourite of my seven-year old daughter. Now, I find

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A snapshot of the world economy June 2022

A snapshot of the world economy June 2022

🕔12:53, 7.Jul 2022

Inflation at levels not seen for 40 years. We expect the Federal Reserve (Fed) in the US to continue to tighten policy aggressively and further increase the federal funds rate target range.  

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QEP: Seven key themes for 2022 and beyond

QEP: Seven key themes for 2022 and beyond

🕔16:32, 16.Jun 2022

Alongside the terrible human tragedy that has unfolded since Russia’s invasion of Ukraine, the war has also exaggerated many pre-existing trends. Some include the upward pressure on commodities and further disruptions to global supply gains at a time when inflationary

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Economic and Strategy Viewpoint Q2 2022

Economic and Strategy Viewpoint Q2 2022

🕔08:25, 16.Jun 2022

The peak in global inflation is probably not far away, but there are several reasons to think that it will fall relatively slowly. Lockdowns in China have caused bottlenecks in global supply chains to re-emerge, upside risks to commodity prices

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Does the 60/40 portfolio still make sense?

Does the 60/40 portfolio still make sense?

🕔11:22, 7.Jun 2022

For over two decades, the 60/40 equity-bond portfolio has served investors well as stock prices have risen and interest rates have fallen. However, the simultaneous sell-off in both asset classes this year has challenged this model. Looking ahead, we believe

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Given stagflationary concerns, our outlook remains cautious

Given stagflationary concerns, our outlook remains cautious

🕔11:44, 6.Jun 2022

Multi-Asset Investments Monthly views  Given “stagflationary” concerns, our outlook remains cautious, with a preference for quality in developed markets. Stagflation describes a combination of slowing growth and accelerating inflation.

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Recession risks rise as inflation takes its toll

Recession risks rise as inflation takes its toll

🕔15:20, 31.May 2022

Economic and Strategy Viewpoint Q2 2022 – The peak in global inflation is probably not far away, but there are several reasons to think that it will fall relatively slowly. Lockdowns in China have caused bottlenecks in global supply chains

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